Data Protection Basics: What You Need to Know in 2025 – A Comprehensive Guide for Businesses

Data protection safeguards privacy. It ensures personal data – information that identifies a person – is only processed lawfully.

Personal data includes names, addresses, phone numbers, license plates, customer IDs, financial data, and online identifiers like IP addresses. Special categories include health, biometric, or religious data and are subject to stricter rules.

Key Legal Frameworks

Data Subject Rights

• Right of access (Art. 15): Information on processing purposes, categories, and recipients.
• Right to rectification (Art. 16): Correct inaccurate data immediately.
• Right to erasure (Art. 17): Delete data if the purpose no longer applies or consent is withdrawn.
• Right to restriction (Art. 18): Pause processing temporarily.
• Right to data portability (Art. 20): Receive data in structured formats, transfer to another provider.
• Right to object (Art. 21): Oppose processing, especially for direct marketing

• Lawfulness, fairness, transparency
• Purpose limitation
• Data minimization
• Accuracy
• Storage limitation
• Integrity and confidentiality
• Accountability

• Data protection: Defines whether and why personal data can be processed, focusing on compliance and privacy.
• Data security: Protects all data from unauthorized access or loss with measures like encryption, access controls, backups, and firewalls.
   

Both must go hand in hand: no data protection without data security.

Technical and Organizational Measures (TOMs)

• Access control (strong passwords, user rights)
• Physical access control (locked server rooms, alarms)
• Firewalls & VPNs
• Encryption (at rest & in transit)
• Backups & deletion concepts
• Employee training & awareness

• DORA: Effective January 2025 for finance sector – strict ICT risk management, testing, incident reporting.
• AI Act: First phase mid-2025 – bans manipulative systems, real-time biometric surveillance.
• NIS2 Directive: Broader scope, more organizations must comply, management liability.
• Global privacy laws: New frameworks in Canada, India, and U.S. states impact international business

• CaixaBank (Spain): €200,000 fine for storing customer data far beyond legal retention limits.
• SIDECU Fitness Chain (Spain): €96,000 fine for mandatory facial recognition with no alternatives.
• Meta (Ireland): €1.2B record fine for illegal data transfers to the U.S.

General statistics: Over €5.6B in GDPR fines imposed by March 2025.
 

1. Set up a data protection management system.
2. Carry out Data Protection Impact Assessments (DPIAs).
3. Appoint a data protection officer if required.
4. Implement technical and organizational measures.
5. Train and raise awareness among employees.
6. Sign proper data processing agreements with vendors.
7. Adapt early to new laws like NIS2 and the AI Act.
    

Tip: A platform like heyData helps automate compliance workflows, manage records, set deletion schedules, and stay ahead of regulatory updates.

Business Checklist

What’s the difference between data protection and data security?
Data protection defines lawful use of personal data. Data security safeguards all data with protective measures.

What counts as personal data?
Any information about an identifiable person: names, addresses, emails, IDs, IP addresses.

How long can data be stored?
Only as long as necessary for the purpose. Then delete or anonymize.

Do I need a Data Protection Officer?
Yes, if 20+ employees regularly handle personal data or if sensitive data is processed.

What happens if I violate GDPR?
Fines up to €20M or 4% of global turnover. Also damages, reputational loss, and corrective orders.

In 2025, data protection is more important than ever. GDPR and BDSG set strict rules and strengthen consumer rights. Companies must respect key principles and adapt to new regulations like NIS2, DORA, and the AI Act. Those who embrace data protection not only avoid risks but also build trust and a strong foundation for innovation.